SOURCE: TLCVision Corporation

May 06, 2008 16:00 ET

TLCVision Reports First Quarter 2008 EPS of $0.12 per Share

Same-Store Procedure Growth Up 9%

ST. LOUIS, MO--(Marketwire - May 6, 2008) - TLCVision Corporation (NASDAQ: TLCV) (TSX: TLC), North America's premier eye care services company, today reported first quarter earnings of $0.12 per diluted share for the quarter ended March 31, 2008.

                        First Quarter 2008 Results

  -- Revenue for the first quarter was $90.4 million, compared to
     $82.3 million for the prior year period, up 9.7%.

     - Refractive Centers revenue was $59.0 million, up 13.9% on the
       strength of higher majority-owned center procedures, which totaled
       34,600 procedures in the first quarter, a 9% overall increase driven
       by a 9% increase on a same-store majority-owned basis. Average
       revenue per center procedure increased to $1,704, up 4.3% from the
       prior year period.
     - Doctor Services revenue increased 0.3% to $25.1 million on the
       strength of higher cataract procedures.
     - Eye Care revenue increased 13.5% to $6.3 million on the strength
       of increases in both the number of franchises and revenue per
       franchisee.

  -- Consolidated net income for the first quarter was $6.1 million,
     compared to $3.5 million for the prior year period, up 75%.
     Earnings per diluted share for the first quarter were $0.12, compared
     to $0.05 for the prior year period, up 142%.
  -- First quarter operating cash flow was $22.8 million, or $0.45 per
     share, compared to $15.3 million, or $0.22 per share, in the prior
     year period, up 49%.
  -- Total debt was reduced during the first quarter by $6.9 million,
     or 6.2%.

Jim Wachtman, President and Chief Executive Officer of TLCVision, commented, "We are very pleased with the operating results for the first quarter. Over the past year and a half, our team has worked very hard to develop and execute a comprehensive strategy to grow the revenue of the company in order to better leverage our fixed cost infrastructure as well as drive both cash flow and earnings per share.

"These results indicate the high operating leverage of our business model and its tremendous potential, especially in a stronger economic environment. We remain very focused on driving revenue growth, managing our costs, paying down debt and delivering shareholder value."

Conference Call

The Company will host a conference call and live web cast with investors and analysts on Tuesday, May 6, 2008 at 4:30 p.m. (EDT). To access, please dial 866-303-7746 or 416-641-6141 (international callers). The call will be broadcast live on the company's web site at www.tlcv.com under the "Webcasts" link in the Investor Relations section.

A replay of the conference call will be available until May 20, 2008. To access the replay, dial 800-408-3053 or 416-695-5800 (international callers) and enter the pass code: 3258680. The call will also be archived on the company's web site at www.tlcv.com under the "Webcasts" link in the Investor Relations section.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, Section 21E of the U.S. Securities Exchange Act of 1934 and Canadian Provincial Securities Laws, which statements can be identified by the use of forward-looking terminology, such as "may," "will," "expect," "intend," "anticipate," "estimate," "predict," "plans" or "continue" or the negative thereof or other variations thereon or comparable terminology referring to future events or results. We caution that all forward-looking information is inherently uncertain and that actual results may differ materially from the assumptions, estimates or expectations reflected in the forward-looking information. A number of factors could cause actual results to differ materially from those in forward-looking statements, including but not limited to economic conditions, the level of competitive intensity for laser vision correction, the market acceptance of laser vision correction, concerns about potential side effects and long term effects of laser vision correction, the ability to maintain agreements with doctors on satisfactory terms, quarterly fluctuation of operating results that make financial forecasting difficult, the volatility of the market price of our common shares, profitability of investments, successful execution of our direct-to-consumer marketing programs, the ability to open new centers, the reliance on key personnel, medical malpractice claims and the ability to maintain adequate insurance therefore, claims for federal, state and local taxes, compliance with industry regulation, compliance with U.S. and Canadian healthcare regulations, disputes regarding intellectual property, many of which are beyond our control.

Therefore, should one or more of theses risks materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary significantly from what we currently foresee. Accordingly, we warn investors to exercise caution when considering any such forward-looking information herein and to not place undue reliance on such statements and assumptions. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any forward-looking statements or assumptions whether as a result of new information, future events or otherwise, except as required by law.

See the Company's reports filed with the Canadian Securities Regulators and the U.S. Securities and Exchange Commission from time to time for cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties, that could cause actual results to differ materially from results referred to in forward-looking statements. TLCVision assumes no obligation to update the information contained in this press release.

About TLCVision

TLCVision is North America's premier eye care services company, providing eye doctors with the tools and technologies needed to deliver high-quality patient care. Through its centers' management, technology access service models, extensive optometric relationships, aggressive consumer advertising and managed care contracting strength, TLCVision maintains leading positions in Refractive, Cataract and Eye Care markets. Information about vision correction surgery can be found on the TLC Laser Eye Center website at www.lasik.com. More information about TLCVision can be found on the Company's website at www.tlcv.com.

TLC VISION CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)

                          Three Months Ended        Three Months Ended
                            March 31, 2008            March 31, 2007
                        -----------------------  -------------------------
                        Results                  Results
                         Before          Total    Before            Total
                          AMD     AMD     TLC      AMD      AMD      TLC
                        Segment Segment  Vision  Segment  Segment   Vision
                        ------- ------- -------  -------  -------  -------
Revenues:
  Refractive centers    $58,967  $    - $58,967  $51,784  $     -  $51,784
  Doctor services        25,063       -  25,063   24,990        -   24,990
  Eye care                6,325       -   6,325    5,572        -    5,572
                        -------  ------ -------  -------  -------  -------
Total revenues           90,355       -  90,355   82,346        -   82,346

Cost of revenues
 (excluding
 amortization):
  Refractive centers     37,357       -  37,357   34,236        -   34,236
  Doctor services        18,141       -  18,141   17,801        -   17,801
  Eye care                2,822       -   2,822    2,475        -    2,475
                        -------  ------ -------  -------  -------  -------
Total cost of revenues
 (excluding
 amortization)           58,320       -  58,320   54,512        -   54,512
                        -------  ------ -------  -------  -------  -------

Gross profit             32,035       -  32,035   27,834        -   27,834
                        -------  ------ -------  -------  -------  -------

General and
 administrative           8,367       -   8,367    9,917        -    9,917
Marketing and sales      11,651       -  11,651    8,435        -    8,435
Amortization of
 intangibles                830       -     830      784        -      784
Other (income) expense,
 net                       (197)      -    (197)     438        -      438
                        -------  ------ -------  -------  -------  -------
  Total operating costs  20,651       -  20,651   19,574        -   19,574
                        -------  ------ -------  -------  -------  -------
  Operating income       11,384       -  11,384    8,260        -    8,260

Interest income             210       -     210      568        -      568
Interest expense         (2,476)      -  (2,476)    (440)       -     (440)
Minority interests       (2,816)      -  (2,816)  (2,448)       -   (2,448)
Earnings (loss) from
 equity investments         217       -     217      811   (2,517)  (1,706)
                        -------  ------ -------  -------  -------  -------
Income (loss) from
 continuing operations
 before income taxes      6,519       -   6,519    6,751   (2,517)   4,234
Income tax expense         (447)      -    (447)    (951)       -     (951)
                        -------  ------ -------  -------  -------  -------
Income (loss) from
 continuing operations    6,072       -   6,072    5,800   (2,517)   3,283
Income from discontinued
 operations, net of tax       -       -       -      195        -      195
                        -------  ------ -------  -------  -------  -------

Net income (loss)       $ 6,072  $    - $ 6,072  $ 5,995  $(2,517) $ 3,478
                        =======  ====== =======  =======  =======  =======

Earnings (loss) per
 share - diluted        $  0.12  $    - $  0.12  $  0.09  $ (0.04) $  0.05
                        =======  ====== =======  =======  =======  =======

Weighted average number
 of common shares
 outstanding - diluted   50,282  50,282  50,282   69,651   69,651   69,651

Note: The AMD segment includes the Company's interest in OccuLogix, Inc.




TLC VISION CORPORATION
CONSOLIDATING BALANCE SHEETS
 (In thousands)

                        March 31, 2008              December 31, 2007
                  ---------------------------  ---------------------------
                                               Results
                  Results                       Before
                   Before             Total      AMD        AMD     Total
                    AMD       AMD      TLC     Segment    Segment    TLC
                  Segment   Segment   Vision (Unaudited)(Unaudited) Vision
                  --------  -------  -------- ---------  --------- --------
ASSETS
Current assets
Cash and cash
 equivalents      $ 22,992  $     -  $ 22,992  $ 12,925  $     -  $ 12,925
Accounts
 receivable, net    20,745        -    20,745    18,076        -    18,076
Prepaid expenses,
 inventory and
 other              14,404        -    14,404    14,882        -    14,882
                  --------  -------  --------  --------  -------  --------
Total current
 assets             58,141        -    58,141    45,883        -    45,883

Restricted cash      1,115        -     1,115     1,101        -     1,101
Investments and
 other assets       17,753        -    17,753    17,524        -    17,524
Goodwill            99,351        -    99,351    94,346        -    94,346
Other intangible
 assets, net        16,189        -    16,189    17,020        -    17,020
Fixed assets, net   59,583        -    59,583    61,936        -    61,936
                  --------  -------  --------  --------  -------  --------
Total assets      $252,132  $     -  $252,132  $237,810  $     -  $237,810
                  ========  =======  ========  ========  =======  ========

LIABILITIES
Current liabilities
Accounts payable  $ 24,423  $     -  $ 24,423  $ 17,177  $     -  $ 17,177
Accrued liabilities 34,611        -    34,611    28,115        -    28,115
Current maturities
 of long-term debt   7,744        -     7,744    11,732        -    11,732
                  --------  -------  --------  --------  -------  --------
Total current
 liabilities        66,778        -    66,778    57,024        -    57,024

Long-term debt,
 less current
 maturities         95,548        -    95,548    98,417        -    98,417
Other long-term
 liabilities         7,030        -     7,030     5,023        -     5,023
Minority interests  15,294        -    15,294    15,224        -    15,224
                  --------  -------  --------  --------  -------  --------
Total liabilities  184,650        -   184,650   175,688        -   175,688
                  --------  -------  --------  --------  -------  --------

STOCKHOLDERS' EQUITY
Common stock       309,652   28,501   338,153   308,972   28,501   337,473
Option and warrant
 equity                745        -       745       837        -       837
Other comprehensive
 income             (2,084)       -    (2,084)     (784)       -      (784)
Accumulated
 deficit          (240,831) (28,501) (269,332) (246,903) (28,501) (275,404)
                  --------  -------  --------  --------  -------  --------
Total stockholders'
 equity             67,482        -    67,482    62,122        -    62,122
                  --------  -------  --------  --------  -------  --------

Total liabilities
 and stockholders'
 equity           $252,132  $     -  $252,132  $237,810  $     -  $237,810
                  ========  =======  ========  ========  =======  ========

Note: The AMD segment includes the Company's interest in OccuLogix, Inc.




TLC VISION CORPORATION
CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands, except per share amounts)

                           Three Months Ended        Three Months Ended
                             March 31, 2008            March 31, 2007
                       ------------------------  -------------------------
                       Results                   Results
                        Before           Total    Before            Total
                         AMD      AMD     TLC      AMD      AMD      TLC
                       Segment  Segment  Vision  Segment  Segment   Vision
                       -------  ------- -------  -------  -------  -------
OPERATING ACTIVITIES
Net income (loss)      $ 6,072  $     - $ 6,072  $ 5,995  $(2,517) $ 3,478

Adjustments to reconcile
 net income (loss)
 to net cash from
 operating activities:
Depreciation and
 amortization            4,895        -   4,895    4,389        -    4,389
Minority interests       2,816        -   2,816    2,539        -    2,539
(Earnings) losses from
 equity investments       (217)       -    (217)    (811)   2,517    1,706
Deferred taxes               -        -       -      851        -      851
Gain on sales and
 disposals of fixed
 assets                    (69)       -     (69)     (88)       -      (88)
Gain on sale of
 businesses               (145)       -    (145)       -        -        -
Non-cash compensation
 expense                   357        -     357      390        -      390
Other                      251        -     251       15        -       15
Changes in operating
 assets and liabilities,
 net of acquisitions
 and dispositions:       8,846        -   8,846    2,019        -    2,019
                       -------  ------- -------  -------  -------  -------
Cash from operating
 activities             22,806        -  22,806   15,299        -   15,299
                       -------  ------- -------  -------  -------  -------

INVESTING ACTIVITIES
Purchases of fixed
 assets                   (851)       -    (851)  (3,671)       -   (3,671)
Proceeds from sales of
 fixed assets              165        -     165      243        -      243
Distributions and loan
 payments received
 from equity
 investments               601        -     601    1,431        -    1,431
Acquisitions and
 equity investments     (2,984)       -  (2,984)  (2,718)       -   (2,718)
Proceeds from sales of
 short-term investments      -        -       -    3,225        -    3,225
Divestitures of
 businesses              1,179        -   1,179        -        -        -
Purchases of
 short-term
 investments                 -        -       -   (3,750)       -   (3,750)
Other                       29        -      29      (10)       -      (10)
                       -------  ------- -------  -------  -------  -------
Cash used in investing
 activities             (1,861)       -  (1,861)  (5,250)       -   (5,250)
                       -------  ------- -------  -------  -------  -------

FINANCING ACTIVITIES
Restricted cash
 movement                  (14)       -     (14)       -        -        -
Principal payments of
 debt financing and
 capital leases        (13,199)       - (13,199)  (1,926)       -   (1,926)
Proceeds from debt
 financing               5,384        -   5,384      167        -      167
Capitalized debt costs    (534)       -    (534)       -        -        -
Distributions to
 minority interests     (2,746)       -  (2,746)  (2,357)       -   (2,357)
Proceeds from
 issuances of common
 stock                     231        -     231      122        -      122
                       -------  ------- -------  -------  -------  -------
Cash used in financing
 activities            (10,878)       - (10,878)  (3,994)       -   (3,994)
                       -------  ------- -------  -------  -------  -------

Net increase in cash
 and cash equivalents
 during the period      10,067        -  10,067    6,055        -    6,055
Cash and cash
 equivalents,
 beginning of period    12,925        -  12,925   28,917        -   28,917
                       -------  ------- -------  -------  -------  -------
Cash and cash
 equivalents, end of
 period                $22,992  $     - $22,992  $34,972  $     -  $34,972
                       =======  ======= =======  =======  =======  =======

Operating cash flow
 per diluted share     $  0.45  $     - $  0.45  $  0.22  $     -  $  0.22

Note: The AMD segment includes the Company's interest in OccuLogix, Inc.

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